If you are underperforming at work, you may come across a performance improvement plan (or Pip). This is usually used by an employer who wants to help you improve, but can also be coupled with disciplinary action, so you may be given a written warning at the same time.

Although a Pip is often ppresented as a tool to assist you in your performance, you should be under no illusions about its secondary purpose. If you don't improve, it will give your employer evidence that they have followed correct procedure, otherwise they may be at risk of a claim for unfair dismissal.

It's important that you know what should be included in the Pip. It should at the very least:

• Clearly and objectively explain why your work is not up to scratch.

• Give clear details of what improvement is expected of you, and provide objectives that can be easily measured.

• Provide a timescale for when the Pip will be reviewed, and how often.

• Make clear what further disciplinary action there will be if you fail to improve.

• Specify whether any support or training will be provided.

Not all Pips are justified and many employees will be surprised and shocked at receiving one. In these circumstances, there may be other underlying reasons for the Pip. The following clues may indicate an unfair Pip:

• If you have had good appraisals prior to the introduction of the Pip, this would raise a significant question as to why the Pip is appropriate.

• A long period of service, without any prior performance issues, does not lend itself to a performance process out of the blue.

• If your relationship with your line manager has suffered, there may be a more personal underlying reason for the Pip.

• Benchmark your work. If you have been selected for a performance process where your work is no worse than your colleagues with the same role and responsibilities, this should raise suspicions.

What steps can you take?

You could speak to your line manager or HR in the first instance and try to resolve the issues on a more informal basis. The chances of informal proceedings being a success are slight, however, otherwise your line manager would have taken that route in the first place.

You can challenge the Pip if you don't agree with it by lodging a formal grievance in accordance with your organisation's policy (it is usually lodged with your line manager or HR). You are often also entitled to appeal any disciplinary warning linked to the Pip by notifying your employer in writing of the same.

If you are being pressured to sign an acknowledgement of the Pip, you should make it clear either at the bottom of the Pip or in a separate email that your signature is under protest and that the terms of the Pip are not agreed, and why.

You may also want to ask yourself if there is a long-term future with your employer. Many will consider the trust and confidence has broken down once a Pip has been instigated, especially if your employer is perceived to be acting unreasonably.

If you do not want to stay, your employer may be receptive to "without prejudice" discussions surrounding a mutually agreed termination, by signing a settlement agreement. This will set out agreed terms upon which you can leave. Negotiations, if successful, would usually result in a lump sum payment to you and a reference, so long as you waive all future claims against your employer. You will need an independent solicitor to advise you on the settlement agreement, but it's usually best to take legal advice before this stage.

Your employer may even embark on settlement discussions with you before a Pip is started. This is not against the law, and employers can openly have such discussions, which are "protected" so that you cannot disclose the existence of the discussions as evidence in an employment tribunal.

Ultimately, if you are dismissed for capability reasons, you do have the right to make a claim for unfair dismissal. But you would need to make it no later than three months less one day from your last day of paid employment.